Unlike the previous two questions, this point does not relate to your individual life situation, but rather to the general development on the capital markets. For example, in the case of fixed-income investments, if you assume that interest rates will rise sharply in the next few years, you should only make short-term investments. As soon as the expected rise in interest rates has occurred, switch to savings deposits with long maturities. In contrast, when investing in equities, you should take advantage of weak phases in the market to buy stocks.
How much relevant know-how do I have?
Successful action on the capital markets, for example by buying and selling stocks, warrants, shares in investment funds and other securities, requires extensive knowledge. In addition, private investors who want to increase their savings capital in this way must keep themselves permanently informed about current developments. Contrary to what is often recommended, it is not a sensible strategy to buy shares and other volatile investments, then not worry about them and sell them at a profit after a few years. The risk of missing crucial information and warning signals is far too great, so that such literally "carefree" investments not infrequently end with big losses.
How willing am I to keep up to date on a regular basis?
Today, you can take advantage of countless opportunities to acquire extensive knowledge about the various forms of financial investments. Publications on the Internet, from articles in online encyclopedias to webinars, convey important content in an easy-to-understand manner. In this way, it is also possible for laypersons to achieve a sound level of knowledge. If you are neither interested in the mechanisms of action that prevail on the capital markets nor enjoy following their current developments on a daily basis, stocks and similar forms of investment are out of the question for you. For all private investors with a pronounced inclination to risk, but without the time and interest to deal intensively with the capital markets, funds can be a good alternative to buying individual stocks in sgexness.com/mt4/.
Since your life circumstances and planning are subject to change, you should review your investment portfolio from time to time to determine whether it still meets your needs. This analysis often results in the need for adjustments. However, before you make any major asset reallocations, be sure to understand the resulting transaction costs.
Today, suitable investment alternatives are available for every risk attitude and investment horizon
A regular review of the achievement of investment goals is also indispensable for private investors
Private investors can acquire extensive knowledge about capital investments with the help of the Internet.
What type of investor are you? Please feel free to tell us about your experience.